Assessment Alternative

Do you want to clarify that a little more? Are you an owner stuck with paying a large sudden assessment? Or a board member dealing with a budget shortfall?

Joe

If the money is due immediately, then either the association or the owner may have to borrow it. Your documents should spell out the requirements for the association borrowing funds. There are a number of institutions that specialize in lending to HOA's. Click on the Community Associations Network link to the right. The NCB ad in the left column and the banking list in the service directory will give you a list of banks to talk to. This would then allow the owners to pay off the loan in installments, spread over a reasonable period of time.

If the money isn't due immediately, or if the board doesn't opt for a loan, they should come up with a reasonable payment program, or be willing to work with individual owners on an installment-type program.

Failing all of that, the owner may be stuck financing their share on their own. That should only be a last resort, after all other methods have been tried.

Joe

Lisa:

I agree with what Joe said, but more importantly why is there a budget shortfall? Was there unexpected expenses? Can you trim some fat out of your budget. The only problem with loans is you are paying for something tomorrow that was done yesterday instead of paying tomorrow for something in the future.